Speaking with a CPA before you close the sale would be a really good idea.

Luckily with commercial there tends to be less of an "emotional" or "fair market" factor to the valuation of the property in that valuation is often directly tied to it's cashflow performance so the bank will have a greater probability of not let you refi to a level that the property becomes a negative performer.

If you want to say something, find out how to get on the agenda, follow the directions, and speak.

Are there any other risks or negative information for the homeowner/seller?

I am only going to speak for myself...I do work with investors but only qualified investors who are the buy and hold type...here is why...I worked for one "aspiring investor" last year who had a 600 FICO and was "pre-qualified" for 100% hard money at something crazy like 15% and all the money in her life amounted to $2000 for an initial deposit.

Today, we measure the value of air rights on behalf of a seller not only by the use of the comparable sales, but also by how much extra value is generated by the air rights," said Von Ancken, speaking at a meeting of the National Realty Club last week.More Articles of Interest U.S.

So, you have to buy carefully, meaning at the right price and in the right area, if you want to avoid negative cash flow.To evaluate these deals, just look at the math.

My plan is to buy and hold and most of what I find looks like the figures below, which is actually an REO I am going to make an offer on on Monday:3/1 and 984 SFListed for 77,900Estimate Appraisal: 93,500 - 114,000Sold in 2006 for $110,000 - but that was during the boom...Will Offer: 69,000Bank Loan: 80%Down Payment: 20% - best my area offersTaxes: 1693.00Insurance: 1,100Repairs: approx 6,000Will probably rent for about $750 - rents not = to the 1% rule in Ocala.After I figure the taxes, insurance, 5% vacancy rate, 8% of income for maintenance (don't really know how to account for this as I'm a newbie), $210 electricity/water holding costs till rented per year, $200 for advertising to rent it per year, my OE are at 48% of my operating income . 8,400 - 3855 = 4,209.I will have 4,209 left to pay P & I, and I will be negative a couple hundred dollars the first year.

Although bird dogging seems to be a way where I can definately get my foot in the door with the least risk and money if not any money at all.I'm moving to the Southeast Texas area in January and thought I wouldn't be able to do my first deal til around then (when I get my bills paid off) but this website has really accelerated my learning, I think I'd be ready here pretty soon.I look forward to speaking with all of you and folks from the denver area in the near future.Also...still new to the forum, I may have just missed it is there a place where I can find where a REI club is nearby?

But, until you speak with them, who knows?